DIGITEX: DECENTRALIZING EXCHANGE IN A COMMISSION-FREE PLATFORM

1. INTRODUCTION

Exchanges across the world are functional and maintained from the charges paid to them by traders who initiate trades on their platform.



It is no doubt that these charges have affected traders massively in the profit they make from trades. This article is about the Digitex Commission-free futures exchange technology on the blockchain. The very first of its kind!
Before I reviewed on the Digitex Futures Exchange in details, let us look at some core exchange terms that we might encountered on this article.

DEFINITION OF TERMS




EXCHANGE


In this context, an exchange is a market place in which securities, commodities, derivatives and other form of financial instruments are traded. The Major function or aim of an exchange is to ensure fair and orderly trading and efficient dissemination of prices information for any securities trading on that exchange.


FUTURES


These are contracts for assets bought at an agreed price but delivered and paid for a later date when the contract/trade finally expired.


TRADING


This is the act of exchanging or giving an item or a commodity or a derivative or any other financial instruments for money or other financial instruments or item of it equivalent.


FUTURES CONTRACTS


A futures contract is a legal agreement between two parties (usually between an exchange and a trader) to buy or sell assets for it to be delivered on a later time in future. This later time can be seconds, hours, days or months ahead. Futures contracts are techniques to hedge or protect positions and reduce the risk of the unknown.

2. DIGITEX FUTURES EXCHANGE

What is Digitex Futures Exchange?

Digitex futures exchange is an exchange for buying and selling (trading) digital assets with a zero commission impose or paid by it user trading on the platform. It is eccentric to say an exchange does not charge its users on trades carried out on it. You are right if you wonder on how it will operate, maintained and pay its staffs and make decisions for effective running of the exchange. It core tool of operation is it token, the DigitexToken (DGTX). The founder Adam Todd and the other teams has manage to put in place some models that will change the way crypto users and traders will interact with futures using the DGTX token. Subsequently, we will discuss more on the functionality and importance of the DGTX token to the exchange. Let us have a look at the problems that has crippled other Exchanges before this God sent initiative.

3. OTHER EXCHANGES

CHARGES

It is no rumor on how future exchanges fund their operations. Charges has been the norm and traditional of all futures exchanges for it is what kept them floating in the game. Users are charged on every single trade initiated on them. These charges are what the exchanges operate, maintained and pay their staffs with. Most times, these charges are unbearable to users as almost all the profit they made from a trade are used to pay for the charges they incure from trading on the exchange.

CENTRALIZED DECISION MAKING

Decisions on how much or percentage charged or imposed on users is a factor determined by a sole owner. An exchange owner might decide to charge all it users on the quantity of asset they want to sell or bought or a fixed percentage on the amount traded or to be won. This decision cannot be altered by the users or anyone else. It is either a user bears the high charges and initiates their trades or simply quit.

CUSTODIAN OF USERS’ PRIVATE KEYS

Another bottleneck of these other exchanges is that user’s private keys are in the custody of the exchanges themselves which has led to loss of assets if such exchanges have some sort of security issues. Other times, users assets are mismanage by these exchanges since they are in control of their users’ account by holding their private keys. Also, users have no choice but to comply with the terms in trading in such platform since their private keys are kept and controlled by the exchange itself. Now, let see the features and benefits of the Digitex Futures Exchange compared to other exchanges.

4. DIGITEX MODUS OPERANDI

Recalled I initially said that the Digitex Futures exchange is an exchange that is commission free when users initiate any trade on it platform. How then does it maintained and operate if charges are not paid by users?

THE DIGITEX TOKEN (DGTX)

The Digitex token is the key feature of the Digitex futures exchange. Holders of the token ensure that the exchange is continually in operation and maintained. The roles of the DGTX token holders include:
• To ensure the Digitex Futures Exchange never cease to operate and also determine the amount of the token to be used for operating the exchange. (This function of the DGTX holder will be discussed below).
• To avoid creating too much new DGTX token in circulation that will devalue their own holding or the token. This is to say that DGTX holders are the decision makers of the exchange and not a single or centre decision making system.

The DGTX token shall be minted every year in order to regulate and give it a value. This will be done by simple voting by individual holders of the token making it a decentralized and democratic system of operation; the voice of the people will be it terms.

GUARANTEE OF SUCCESS

With the attention the DGTX token had made so far, it is guaranteed that the DGTX token and Digitex exchange is the next generation of Futures exchange. On it ICO launching, it is one of the fastest selling ICOs raising over $5.4 millions in just 17 minutes. Also, it will interest you to know that as at the time of writing this article over 100,000 are already on the waitlist on it of which I am one of them.


DGTX token compared to the top ten Cryptocurrencies

You can be among the beneficiaries of the Digitex steem bounty and become a part of this great revolution before there will be a surge in demand for the token at the fourth quarter of this year.

http://digitexfutures.com/get-early-access/?kid=RJ7P0

WHY THE BLOCKCHAIN?


With the promising features of the blockchain, it decentralized nature and the creation of more tokens on the blockchain, there is bound to be need for a more standard exchange medium to trade these tokens.
Having a decentralized decision making platform is also necessary to control over charges on users.

5. OTHER FEATURES OF THE DIGITEX FUTURES EXCHANGE

NO CHARGES ON TRADES

With the Digitex futures exchange, every of its users profit is credited to them without a commission deducted. In other words, it is a 100 percent commission free trading.



The only simple criterion is for users to possess the Digitex token. With the Digitex token, holders/users can initiate a trade and the cost of executing such trade is a factor determined by the holders themselves. Every profit or lost that might be incurred at the end of the transaction is expressed in terms of the DGTX token. Therefore, a user must possess the token to participate.

DECENTRALIZED ACCOUNT BALANCE

Unlike other exchanges that holds their users’ private keys; forcing them to comply with the exchange terms in all weather (whether is it in favour of the user or not). Digitex are not in possession or in control of users’ private keys hence, mismanagement of funds, and insecurity of the exchange itself does not have any effect on traders’/users’ wallet.

DECISION MAKING AND ISSUANCE OF NEW TOKEN INTO THE MARKET

As previously stated, existing holders of the DGTX are the ones who determine the amount of the token to be release into the market. This will help in regulating the excessive deployment of the token into the market knowing fully well that too much of the token in circulation will devalued their own position. Issuance of new token into the market is done by existing token holders by voting on their personal interest and how much to cover for expenses in operating the Digitex exchange. Holders can also delegate their voting power to other trusted tokens holders if they are not interest in participating in voting for new tokens.

NO AUTO DELEVERAGING

That is right, Digitex futures will not selfishly cancel a trade initiated just because it sensed that the user is about to win the trade. In other words, the DGTX token is what keeps the exchange running. The more users loss their trades, the more their tokens are used to compensate for the lost and the more they will demand for more tokens to be able to participate in subsequent trading. However, the Digitex exchange does not cancel trade for users to lose the trade and demand for more tokens.

ONE CLICK LADDER TRADING INTERFACE

Traders can buy and sell futures on the Digitex futures exchange with just a single click.

SUB-MILLISECOND ORDER MATCHING

Digitex is built on the Erlang/OTP stack that helps to update prices within a very short time usually in milliseconds that are unnoticeable to users.

BITCOIN, ETHEREUMM AND LITECOIN FUTURES

Digitex futures market has THREE top futures markets to be traded on the market with a large tick size. A tick size is the smallest price movement of a trading instrument. It is the minimum increment price movement that can be experienced on an exchange. The Digitex futures tick size is large enough to eliminate doubts of trade.

TOTAL PRIVACY

There is absolute privacy trading with Digitex futures. No annoying KYC data base to collect information of users before they can enter a trade. The best privacy is never to collect users’ information and you will not bother on losing them because they were not collected in the first place. Since users are not prompted for their personal data before trades can be initiated, there is therefore no need to be scared of frauds, hacks and mismanagement of assets via the personal information they've provided.

6. USE CASE

Bob is a bitcoin holder (worth 230 bitcoin). He has his bitcoin wallet encrypted and secured with his private key therefore; no other third party can access his account. He is a user of the Digitex futures exchange and of course, he possesses the DGTX token that gives him the authority to trade and make decisions on the exchange. If Bobs wants to trade part of his bitcoin, he does not involve his real bitcoin asset rather he initiate the trade by staking part of his DGTX token. This DGTX token he stakes is used to carted for the trade if he losses or wins. If he loses, his DGTX token pays for the loss. If he wins, his DGTX token is refunded and all necessary transfer are made to his Bitcoin wallet without directly involving his Bitcoin wallet. It is more like a Demo trading yet real!

FOUNDER


The Digitex Futures Exchange is founded by Adam Todd.


Adam Todd, CEO/FOUNDER, Digitex Futures Exchange

Adam Todd has been breewed in the exchanged industry. He is the Ex pit-trader on the London International Financial Futures and Options Exchange (LIFFE). He also founded BetTrader.

Other members of the Adam's team of Digitex include:

• Lee Mayne (Head of Operations
• Martin Deering (Head of Information Technology )
• Lidia Yadlos (Head of Marketing)
• Dmitrij Szewcow (Communications Manager) and
• Sona Gill (Communications Manger)
They all have good reputation in their feild.

TIMELINE



Join the waitlist to earn more than 1000 DGTX Token here: http://digitexfutures.com/get-early-access/?kid=RJ7P0

CONCLUSION

Digitex Futures exchange has a promising future for the exchange industry. The strong foundation and attention it has attracted even when it has not been launched signifies that it will rank the top of the Exchange chart. It will change the way crypto users will interact with futures as trades are not initiated with their physical assets rather the DGTX token. This commission-free nature of the Digitex futures will create high liquidity and enable users gain more profit since commissions are zero.

Also, the democratic system used in voting and issuance of new token will give users the confident that their assets are in their own hands. This will make Digitex exchange the most sorted in the next few years.